If a manufacturer decides to establish a financing capability in-house or establish a formal partnership with one or more finance sources, it should consider the operational aspects of the management of the portfolio. In such cases, consideration should be given to the following:
- Operations: Back-office support and documentation
- Sales: What's the best way to generate business for your captive?
- Risk Management: Assessing credit, residual and other areas of risk
- Regulatory Issues: Compliance with state and federal tax, licensing, and accounting laws and regulations